Superman Ostrich

I think it was Shakespeare who wrote “neither a borrower nor a lender be”. These are appropriate words for banks these days but sentiments like that will freeze markets. Our thoughts are “neither a hero nor an ostrich be”. Here’s hoping that 400+ years from now people will be repeating that phrase half as frequently as Shakespeare’s line.
Here’s the thought - now is not the time to make grandiose bets on the markets NOR is it the time to ignore the fact that many great companies and mutual funds are on sale - (this morning the Dow is looking to open below 9900).
Take a look at a Johnson & Johnson (below $60), or a Cisco Systems (below $23) - how about some Payden GNMA fund (holding up nicely). Our point is that THIS is not the end of the world (though it feels that way) NOR is there any guarantee that the markets will not continue lower.
For some time, we have been advising dollar cost averaging and incremental moves and that makes more sense now than ever.
“Don’t be a hero - don’t be a coward”- could’ve been said by Othello, don’t you think?

This entry was posted on Tuesday, May 25th, 2010 at 8:17 am and is filed under Commentary. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.